Bankers admit the rich are getting richer | National Union of Public and General Employees

Bankers admit the rich are getting richer

"People who already have plenty will be spending anything extra on what most people see as luxury goods,: said Clancy, "but more spending in luxury Carribean hotels or country club memberships does little for our economy."

Ottawa (08 Oct. 2013) - “While many corporations and conservative commentators are trying to deny income inequality is rising, BMO Harris Private Banking is quite happy to admit it.” James Clancy, National President of the National Union of Public and General Employees (NUPGE).

Affluent Canadians are better off financially than before 2008 recession - middle class is not

A study the bank recently released boasts that, ‘Majority of Canada's affluent say they are better off today than before the 2008 downturn.’

According to the study, 54 per cent of wealthy Canadians feel they're better off financially now than they were before the recession started in September, 2008. 

“Sadly that's not true for the rest of us,” said Clancy. “Most low and middle income Canadians have seen their incomes stagnate or even fall.”

In June, Statistics Canada reported that since 2008 there has been no significant change in the median after-tax income. As the price of many necessities has increased faster than inflation, the average family is losing ground.

“Over the last month NUPGE’s All Together Now! campaign's Fairness Express has been talking with people in Atlantic Canada about income inequality,” Clancy continued. "What people are telling us is that even middle income earners have to struggle to keep their heads above water.”

Wealthy Canadians' plan to spend more on luxury goods

The responses to the question about where the wealthy plan to spend more help explain why cutting taxes for the wealthy has failed to strengthen the economy.

For most Canadians an increase in income will be spent in their communities – much of it on necessities like housing, food or fuel. According to the BMO Harris Private Banking survey, the wealthy are planning to spend their extra income on entertainment, travel and club memberships.

"People who already have plenty will be spending anything extra on what most people see as luxury goods,: said Clancy, "but more spending in luxury Carribean hotels or country club memberships does little for our economy."

NUPGE

The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE